How do you deals with failed investment in real estate.

[Kayzzy3]

A real estate firm bought about 7 hectares of land in a developing part of the city for housing unit development, due to lack of funds to fully developed the 7 hectares, they decided to develop it in 3 phases.
Now after more than 15 year they could only develop phase one, presently, encroachers have taken over the other part of the land and they are unable to chase them out.
They are now caught between the dilemma of selling the undeveloped part at a very bid down price or continue to deal with the encroachers until when they have money to develop further.
What would your advise be??

 

[Ojonuyo]

Sit down and go over the investment, check out what made you failed. After you have done that structure ways to fight that challenge of failure the next time it comes. And do start with a small amount of money.

 

[WhiteHouse]

You just have to chin up and go again, look at where you failed, what you did Wrong and look for ways to amend it and Improve on it, if you need to get additional knowledge, then go get it.
You just have to be resilent and don't give up easy.

 

[Sotherefore]

I wonder how you did the real estate investment that make it a fail one because as far as I know if you plan your estate investment very well there is little or no chance of it being fail,but there are some ways you can try to recover yourself from the pains is by allowing it to go and move on, sometimes made adequate plan and preparation when engaging into something you don't really know or have an understanding about

 

[Alexandoy]

One friend bought a big land in the province. He was surprised that when he had paid and he went back to the land there were squatters (informal settlers with no permission). When they declared their ownership the settler seemed to show animosity that the owner left in fear. It took my friend more than a year to get his land free of settlers. But he paid so much as an amicable settlement. That is one issue when you buy land in the rural area. Informal settlers are like extortionists.

 

[GoldenLady]

In this case, they need to do a very detailed analysis of what went wrong, so they can know whether to keep on holding the and it to sell it.

Settlers are really difficult to deal with, and they increase like cockroaches, very fast.

If care is not taken, your friend will lose the little tht have left.

 

[Abibatabosede]

I don't think there's failed investment in a rural area rather it could be adelayed income.We just have to be a little patient and wait until the area is developed for a better profit.

 

[maventiger]

That's not a failed investment but whatever you are facing is due to lack of proper feasibility study and capital plan.
With necessary documents of legal ownership of the land You can fight off the informal settlers.
Also, strategies on how to to get mortgage loan to finance the project and ensure you are comfortable with the amortization period given by the bank.

 

[Nova]

I think just adjusting with what you have and then not making the same mistake is the only thing you can do in general. You don't have outcome in your control. You do have things in control which are easily viewed and transparent in life. Same goes for the real estate, you have to calculate your loss and move ahead from that.

 

[Ralphjoe]

These kinds of stories are so rife, where a real estate company will purchase a land and later start having issues with either developing it due to paucity of funds or encroachers encroaching on the land.

To avoid these kind of issues, one should always make sure that you have the money to develop your land before you buy it so that you can develop it easily and also be careful of the kinds of land that one buys, so as to not fall for the trap of squatters. In this particular situation, this friend of yours should involve government agencies in the issue and it will be resolved quickly.

 

[Sariana23]

In my country these cases have been seen and it is not easy to make a decision. As you say, they have two outlets, but there is also the option of negotiating with government agencies on housing. They can reach agreements where the government recognizes the investment of the owners, pays and takes control of the land.

 

[Adeyoola7]

First: Let It Go. Never hold on to a bad investment — even if you think you might be able to turn it around in the long run. The second you find yourself tied up in a poor real estate investment, determine an exit strategy as quickly as possible. Often, your best bet is to sell off the property at a lower cost.

 

[Heatman]

If it's possible to repel the encroaching invaders in the land, it would be a good idea than to just give up the land and sell it. One thing is very certain, they will under sell the lands because they are being put under pressure to sell it when they are not supposed to.

 

[Taimoor Jutt]

I will just say, cal down and think what have you done wrong. And where did you mistake, think this with calm head. So I'll say don't worry try to over come your negative aspects and your mistakes. Go and do this again.

 

[Heatman]

I will just say, cal down and think what have you done wrong. And where did you mistake, think this with calm head. So I'll say don't worry try to over come your negative aspects and your mistakes. Go and do this again.

Rushed decisions never goes down well with whoever that took such decisions. I completely agree with you on this one that he should take the time to rethink what needs to be done in the right direction in order to achieve success with the investment.

 

[Taimoor Jutt]

Rushed decisions never goes down well with whoever that took such decisions. I completely agree with you on this one that he should take the time to rethink what needs to be done in the right direction in order to achieve success with the investment.

Yes rushing leads to that point where you will regret only about decisions. Whenever we faced this kind of scenario, we should remain calm and cool about that and try to be more positive and go with better attitude. Losing, failure is a part of game and business.

 

[Trexxxy]

I think the firm should look out for partnerships, something that will buttress their financial standpoint and find a way to chase the encroachers away from the undeveloped part of the land or better still the remaining sections of the land should be fenced.

 

[Sehrish]

Buying your own house is not really real estate investing - it’s a form of purchasing shelter.

There are dozens of reasons that cause real estate investors to fail.

Of course, many people have failed at real estate investing. Many people don’t have the right personalities to be landlord, and they end up in contention with tenants. Some don’t choose their tenants very carefully. Many don’t study the laws of their jurisdictions and understand what your tenants’ rights are.

 

[Sammyesx]

That is a bad situation, that is why is good to have a business plan, from their plan there would have been provision and plan writing down to achieve this, they are stocked at phase one of the business. the best thing they can do now is to partner with another real estate firm or get investors.

 

[joy101]

In real estate investment the only failure is lack of planning, to avoid failure in real estate business you need to have money so to develop your land, you should business plan before going into real estate investment,